A former Conservative pensions minister who served in the role for six years has warned that Labour’s pledge to prevent millions of pensioners from receiving Winter Fuel Payments this year “will not last”.
Guy Opperman, who served in the top Government job from 2017 to 2023, took to social media this morning to explain why he believes Labour is “making a big mistake” by choosing to target pensioners in this way.
Over a series of posts on Twitter/X Mr Opperman explained why, for both technical and threshold reasons, Labour will live to regret their decision.
Mr Opperman explained: “Firstly an explainer of our benefit system. It is a big beast made up of 12+ ageing computer systems and 1000s of admin staff. It does not do nuance and fine margins.
“The state pension and add-on benefits – winter fuel payment, Christmas support etc – are one-off payments.”
He pointed out that not only is Labour now cutting Winter Fuel Payment for most pensioners, but in addition to the basic rate older Britons will also lose the £300 extra the Tories gave them over the last couple of years to cope with the cost of living crisis.
This means millions of pensioners losing £500-£600 in one fell swoop, something Mr Opperman describes as “huge”.
He says he knows the civil servants at the Department for Work and Pensions who will be advising Sir Keir Starmer’s new ministers, and claims they know the Government cannot means test the winter fuel payment, save money and avoid huge gaps in support for the poorest pensioners.
Mr Opperman explains: “The reason is because, whilst we all agree that multi-millionaires should not need winter fuel payment support, people who have only the state pension do need this support.
“The error Labour is making is in targeting both these groups.
“Their exceptions are way, way too narrow. And this relies on pension credit applications filling the gap.”
Rachel Reeves has said that in order to mitigate the change hitting the poorest pensioners, the Government will push to ensure everyone entitled to pension credit – who will be the only ones eligible for Winter Fuel Allowance from now on – is claiming it.
Around 850,000 thousand pensioner households that are eligible for pension credit do not claim it, according to the most recent DWP figures.
However here Mr Opperman says there is also a problem – something he is acutely aware of as the minister in charge of pension credit for half-a-decade.
He continued: “I, DWP staff and other Ministers worked ceaselessly to drive up applications and take up.
“We campaigned in a multitude of ways from advertising in post offices, media campaigns, letters to pensioners, letters to local papers and even enlisted Len Goodman.
“We succeeded in increasing take up. But still 100,000s of people did not apply. And the application is slow and complicated. It needs 100s and 100s of people to man any increase in this system.
“People, by the way, that the DWP do not presently have. But that is how Gordon Brown designed pension credit.”
Mr Opperman concludes: “The reality is that between multi millionaires and state pensioners not on pension credit, 1000s of pensioners will struggle to heat their homes this winter; I know 100s of my former constituents in Northumberland will struggle this winter”.
“I could outline a lot lot more detail on this issue, but one thing is sure: This policy as presently proposed will not last.”
This morning, Labour minister Matthew Pennycook insisted that the slashing of eligibility for Winter Fuel Allowance was “not a decision that we planned to take, nor a decision we wanted to take”.
“This is one of a number of difficult choices that we’ve had to take in terms of targeting winter fuel payments on those who are in receipt of pension credit, rather than everyone who’s entitled to it.”
